Pensions  

Budget 2021: CGT, IHT and pension tax relief escape again

But there was no mention of the tax in today's statement. 

Inheritance tax receipts meanwhile are rising. For the period April to September receipts were up £700m year-on-year, most likely due to higher volumes of wealth transfers during the pandemic, according to HMRC.

Finally, the threat of changes to pensions tax relief, such as a switch to Isa-style pensions or a flat rate for all, or even a cut to high earners' relief, has been on the cards for a while and tends to resurface when Budget day nears.

Currently tax relief on pension contributions is paid at the saver's marginal rate of income tax at the point of saving. Pension income is then taxed at point of withdrawal, opposite to the Isa system. 

Previously there have been concerns that the government was looking to cut high earner’s relief to 20 per cent or move to a 25 per cent flat rate.

But so far nothing has materialised, prompting a sigh of relief from some. 

Adam Walkom, co-founder of advice firm Permanent Wealth Partners, said: "From most people's perspective, it really was a nothing budget. No major changes to income or CGT rates, pensions nor inheritance tax.

"When the major tax announcements are on the smallest of taxes such as tonnage tax and domestic air passenger duty, this shows how much the Chancellor was scratching around the edges of tax reform."

carmen.reichman@ft.com